Shearwater Share Discussion Threads

[gucci] 29/3/2006 10:24

great news

[sheik yerbouti] 29/3/2006 07:22

Major contract announced.

[gucci] 22/3/2006 17:17

what a beautiful chart
heading towards 300p soon

[sheik yerbouti] 22/3/2006 16:23

I don't think they are all sells johnv, the bid is moving up now. Some large stakes probably changing hands.

[johnv] 22/3/2006 13:37

large amount of sellers today, yet price hanging on. Would buy but the feeling that sooner or later the price will soften.

[johnv] 17/3/2006 22:50

thanks for that guys

[mr mole] 17/3/2006 22:33

Yes but looking at the prospectus in this company there look to have been supplementary payments of around £3m in last year or so, despite this the company appears to be improving PBIT, and on current forecasts the deficit is projected to be sorted in around 8 years with payments maintained at existing levels. Through the flotation and changes to the pension scheme, looks like a large hole has been made significantly smaller and hence contained at managable levels. If turnover increases at 15% pa, the relative effect also reduces.

[simon gordon] 17/3/2006 19:44

They will have to pay a supplement to the Pensions Protection Fund and over time plug the defecit which is likely to grow due to low bond yields and longer life expectancy.

It is like having a running sore which bleeds cash that otherwise would be returned to shareholders or used to finance growth. All in all, it is a problem for many UK PLC's.

[johnv] 17/3/2006 19:36

Can anyone tell me how the pension defecit of £24m will affect the ptp. Will they have to at some stage stick £24m of profit into the pension fund?

[adpstar] 15/3/2006 14:53

I totally agree this company is exciting, and really going places and thats the thing the market likes. Up 15% on the first day of trading.
It has offices in Delhi & Shangai, that shows how forward looking they are, as okay the construction industry is great in the UK but it's China & India where the real mega growth is.

[sheik yerbouti] 15/3/2006 14:44

adpstar, I wasn't disagreeing with you, I think Sharewatch figures look the wrong way round? They are very bullish on the shares, with possible compound eps growth of 22% over the next four years.

[adpstar] 15/3/2006 14:35

ok we beg to differ but the bottom line is that it has a very low p/e compared to it's rivals which ever figure you take -
It's main uk quoted rivals are WS Atkins, WSP Group, RPS Group, White Young and Hyder Consulting.
And out of all of them Scott Wilson is the fashionable one.
The one where all new grads want to work, the one involved in the most exciting and profitable projects.

[sheik yerbouti] 15/3/2006 14:24

This doesn't sound right - Sharewatch say forecast profit of £14.5m for year ending next month, and then £12.1m for next year. Looks like the wrong way round?

[adpstar] 15/3/2006 14:19

Yes your right the current p/e is 14.2 BUT

I am basing my p/e on what i expect the year end accounts 30 April 2006 to be.

Revenue growth at Oct 05 was 13.4% and profit margin was 6.5%
Which if this continues based on last years revenues of 160m x 13.4% = 181m.
The margin is 6.5% so i make that profits of 181m x 6.5% = 11.76m

Rev £181m
Profit £11.76

The real results could be better still!

Current market cap is £130M

Therefore come the results the p/e will be about just under 11.

[sheik yerbouti] 15/3/2006 14:07

adpstar, where do you get a pe of 10.8? According to Sharewatch, who tipped them at the weekend, the forward pe is 14.2 at the issue price.

[adpstar] 15/3/2006 14:06

If you want a good steady growth stock, like the ones you'd wish you got into at the start, then this is the one. Not everyday a company like this floats.

[adpstar] 15/3/2006 14:05

It's a big player in airports, worked on Manchester airport.
It's big in China and there the governments plans to build 20 airports in the next few years.
It's worked on roads in India and there the government is investing heavily in new roads.
It's bound to get contracts for the 2012 olympics too.
the list goes on..........

[adpstar] 15/3/2006 14:00

Me too, the results comee out after 30 April - if all goes to plan revenues will hit 180m, whilst profit at 6.5% margin makes that just under 12m.
It's rivals are on p/e of 20+
whilst this is just at a p/e of 10.8
Therefore expect this to get rave reviews and buy notes soon as the dust settles.

[sheik yerbouti] 15/3/2006 08:11

I'm in, looks good for consistent long term growth.

[mr mole] 14/3/2006 19:00

Starts trading Wednesday am. With other Engineering and Environmental consultants showing good profitability, will be interesting to see if this follows upwards. Reports are that placing was oversubscribed at 158p.

[mr mole] 12/3/2006 19:44

Thanks. I've since found a link to prospectus.

[simon gordon] 12/3/2006 15:57

No - I sent an email to SWG requesting a copy and they had one posted to me.

[mr mole] 12/3/2006 13:47

Simon. Do you happen to have a link to the prospectus ?

[simon gordon] 10/3/2006 10:43

The prospectus states there will be a post IPO pension defecit of 24m.

This has put me off digging any deeper on this new PLC.